Government wants AUM land transfer resolution approved by Wednesday

The Maltese government wants a parliament resolution for the transfer of land to Sadeen Group approved by no later than next Wednesday before parliament breaks off for the Christmas recess.

Although Sadeen's AUM project cannot come into force before accreditation is issued by the NCFHE, Education Minister Evarist Bartolo told journalists that "other processes" - such as MEPA applications - need to be launched.

At the same time, if AUM fails to achieve accreditation, the contract falls through.

Any changes to the deed will need to go through parliament for approval.

Addressing a media briefing during which the government published the Draft Emphyteutical Deed, Bartolo, the chief of staff within the Office of the Prime Minister Keith Schembri and lawyer Alex Sciberras said the project will bear an initial investment of €104 million.

Zonqor Point and Dock 1 will be granted to Sadeen by title of temporary emphyteusis for a period of 99 years. It cannot be converted into a perpetual one. Ground rent starts at €40,000 in the first year and increases gradually to more than €1 million by the 31st year.

Throughout the term of the grant, the permitted use of the designated land "shall be solely and exclusively educational".

Sadeen will take out an insurance policy of €2.5 million. A list of conditions allow the government to dissolve the grant, including failure to complete the project within a year the limit set in the deed and if the property is used for any purpose other than the permitted use.

A copy of the draft deed was passed on to members of parliament from both sides of the House yesterday evening, after the finalisation of the draft deed. The deed is now being scrutinised by a parliamentary committee.

Sciberras said the contract must be signed within a year, or a new one will have to be drafted.

Always subject to the time when the accreditation is issued, AUM shall start temporary operations with the first intake of students from Bormla site by not later than 31 October 2016. If the accreditation is not issued by then, the contract falls through.

There is the option for AUM to start its foundation courses at Smart City before moving its campuses to Dock 1 and Zonqor Point.